Ingersoll_Rand_GroupG2

Ingersoll Rand (A)

Presented By – Group G2Kailash GoelKhushal Puri

Mrinalini DeshpandeSourav Mishra

Vivek P

Ingersoll-Rand (A) Group G2 2

Ingersoll Rand

• Deals in Stationary Air Compressors• Market share – 30%• Manufactures 3 main products – – Reciprocating compressors– Rotary compressors– Centrifugal compressors

• Introduction of a new 200Hp Centrifugal model – CENTAC 200


Stationary Air Compressor Market

• Classification of Products by size– Small - less than 25 Hp– Medium – 25 – 300 Hp– Large – greater than 300 Hp

• Market size in 1985 - $660 million • Ingersoll Rand leading supplier in the US capturing 30%

of the market• Major players

– Joy (Centrifugal Compressors)– Sullair (Rotary Compressors)– Atlas Copco ( Stationary Compressors)


Stationary Air Compressor Division

• Ingersoll Rand – Sales in 1985- $2.64 billion• Manufacturing operations – 16 countries• Sales office- 40 countries• Distribution Arrangement – 80 countries• What do we understand ? ? ?– Ingersoll Rand has a very good network of

distribution


Distribution System

• Four types of Distribution Channels-– Direct Sales Force– Independent Distributors– Air Centres– Merchandising Teams

• Direct Sales – 26 Territories– Sales of >250 Hp Recips & 450 Hp Rotaries and all Centrifugals

• Distributors & Air Centres– Sales of <250 Hp Recips & < 450 Hp Rotaries

• Merchandising Team– Sales of Recips < 5Hp & under


Buying behaviour• Direct Sales -

– Large Compressors (>300Hp) – purchased by Contractors like Bechtel, General Motors.

– Quotations contained detailed specifications– High degree of technical expertise– Service requirements are complex– Lead time of 6 – 8 weeks

• Distributors & Air Centres– Selling of medium & Small compressors– Off-the-shelf availability– Lead time of 1 weeks

• Merchandising Teams– Selling of – A different set of customers, Plumbers, Small contractors etc


CENTAC 200• What is Centac 200???

– CANTAC 200 – is a centrufigal compressor with 200 Hp– Spare parts requirement as low as 2 – 3% of initial cost per annum.– Operates @ very high speeds – 50000rpm– Requires regular repairs


How it should be distributed????

• Direct Sales???• Distributors & Air Centres???


If distributed through – Direct Sales…

• Advantages – – It has well established Service Capabilities– Availability of Spare parts as and when required

• Disadvantages – – Not a lucrative offer as the Sales reps are Elephant hunters,

they go for Large orders– The product would be a lower category product which

would not interest the Sales rep– Existing set of customers – Do not fall in 200 Hp category– Difficult to get new customers considering Network

constraints


If distributed through – Distributors & Air Centres…

• Advantages – – Willingness to upgrade their product range from Small &

Medium to LARGE.– Well established Network– The product is consistent with existing Hp assignment– Good reward for the Distributor – IR would be motivating

them to sell the new product.– Increase in Loyalty quotient with IR– The product requires less spare parts, while distributors

face a problem of supplying spare parts – an advantage to the distributor


If distributed through – Distributors & Air Centres…

• Disadvantages – – The new product will deviate its attention to Large

compressor– Intense Technical training required to provide

required services– Risk of being dependent on a particular channel


Strategy to be adopted..

• Go ahead with DISTRIBUTORS• Provide necessary trainings

Ingersoll_Rand_GroupG2

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